How to keep calm and invest smart during a market crash

Yuhman 8 min read
Beginner
Invest
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When Credit Suisse crashed in 2023…
 
March 2023: Credit Suisse teetered on collapse, sending shockwaves through global markets. Panic spread fast. Stocks tumbled. People wondered if this was «Lehman 2.0», a throwback to the 2008 collapse that triggered the global financial crisis. And while UBS stepped in for a historic rescue, the whole episode reminded investors of one thing: markets can go haywire fast.
But if you kept your cool, you might’ve spotted something else: opportunity.
Market turbulence can shake your confidence, sure but it also opens the door to smart investing moves. Think safe-haven assets like bonds, dividend-paying stocks that keep the income flowing, or a touch of gold for stability. Add in some cash on hand and a diversified portfolio, and suddenly the chaos doesn’t feel so scary it feels like a strategy.


Turbulent markets? Don’t panic, invest when prices drop

Stock markets crash. Headlines scream. Portfolios wobble. The good news is: Market chaos isn’t new and it isn’t the end of the world. With a few calm, calculated moves, you can not only survive the storm, but come out stronger. Let’s see how:

1. Embrace the classics: bonds

Think of bonds as the calm, rational friend in your financial squad. Especially in stormy weather, U.S. Treasury bonds or high-quality European bonds offer predictable income and lower risk. They won’t deliver adrenaline rushes but that’s exactly the point. They’re backed by governments, pay you interest regularly, and often act as a stabiliser when stocks start misbehaving.

2. Dividend stocks: income, even in chaos

Dividend-paying stocks are the financial equivalent of a friend who always picks up the bill.
These companies share part of their profits with you – usually 1 to 4 times a year – in the form of cash payouts called dividends. They’re often found in stable sectors like utilities, healthcare, or consumer staples – places where demand stays steady even in tough times. You get income while waiting for the market to calm down. Not bad, right?

3. Precious metals – a shiny plan B

When markets freak out, some investors go back to basics like gold and silver. These precious metals have been considered safe stores of value for centuries. They often hold up when stocks fall. That said, their prices can be pretty wild too, so maybe don’t bet the farm on day one.
When strong companies temporarily drop in value, it’s like walking into your favourite store and seeing your go-to chocolate bar at 30% off.

4. Cash and cash equivalents

You don’t always have to be fully invested. Holding cash or money market funds means you’re flexible, you can act fast when good opportunities pop up. Think of it as having dry powder ready when things go on sale. When everyone else is panic-selling, you’re the one shopping smart.

5. Buy the dip (a.k.a. the discount strategy)

When strong companies temporarily drop in value, it’s like walking into your favourite store and seeing your go-to chocolate bar at 30% off. Same chocolate. Better price. If you’re in it for the long haul, market downturns can be your moment to buy low and eventually reap the rewards when the bounce-back happens (and history shows it always does).

6. Defensive Stocks: the quiet performers

Even in a crisis, people need toothpaste. Defensive stocks are companies that provide essentials healthcare, electricity, food, cleaning supplies things that don’t stop selling when the economy slows. These stocks tend to be less volatile, helping cushion your portfolio when other areas take a hit.

7. Diversification: the unsung hero

Warren Buffett says it, and we’ll say it again: Don’t put all your eggs in one basket. Diversifying across asset classes (stocks, bonds, cash, maybe even a little crypto if you’re feeling bold) spreads risk. It’s like assembling a team: when one player has a bad day, someone else steps up. A well-diversified portfolio is a resilient one.

The bottom line

Stock market crashes are never fun. But they’re not rare, either.
The trick is not to run but to reposition. With patience, perspective, and a pinch of courage, you can take advantage of the chaos instead of falling victim to it. Investing is a long game. So next time the markets look like they’ve had one too many espresso shots, stay calm, stay smart and maybe snag that discounted chocolate bar while you’re at it.
How to invest when the market crashes?
Turn panic into potential. When stock markets take a hit, stay calm and think long-term. Focus on strong companies, diversify your investments, and consider assets like bonds or dividend stocks.
 
Your Yuh app doesn’t flinch. Use the Invest section to explore bonds, dividend stocks, and ETFs that offer more stability in stormy times. Want to build up cash reserves? Set up a vault to keep your liquid assets safe and within reach. Or check out market overviews for spotting smart buys when prices drop.
 
It’s all there, in one place—so you can stay cool, click with confidence, and invest like the calm, collected human you are.
Hungry for more? Check out our comprehensive article about investing.
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